Explain Compensation Management

The compensation management forms the very important subject of the human resources and is actually the policy that is implemented in the general terms in the conjunction with the specialised soft ware that is designed in order to help the organization to maximise the available talent returns. The main goal of the compensation management is to reward the right type of the people to the most possible extent just as a response for the most relevant reasons. The compensation is a very systematic type of the policy that focuses on the approach to provide the monetary and the non monetary value to the workers in reply of the work that has been performed by them. In some of the scenarios the compensation management may be referred to as the money that is received according to the performance of the work and also the many kinds of the benefits that are received by the employees and are given by the organisation. The compensation management is required a lot these days and forms the major part of the process of the recruitment process and the selection process. It plays a very major role to recruit and then retain the qualified employees in order to increase the morale of the employees or at least maintain it to the present level. It helps to know about the basic wage and the salary and also helps to reward the employee for the job performance.

The compensation management can be followed in two types of the compensation, the direct and the in direct type of the compensation. The direct type of the compensation involves the basic pay, the bonus, the long term incentives and the perks or the perquisites. The in direct type of the compensation involves the insurance like of the eye or the health insurance, the leaves that may include the sick leaves, the mandatory leaves or the holidays, the clothes, the company parties, the phones, the lap tops and the various retirement plans that may be offered to the employees by the company. The non monetary part consists of the facts like the dignity enhancement and also the satisfaction from the work that has been done. By this the social relation ship between the co workers is promoted and also enhanced. Also involves the allocation of the sufficient resources as a result of the performance in the various types of the assignments of the work. The supportive leader ship and the management are also required in order to enhance the physiological health and the intellectual growth. The importance of the compensation management involves the description of the job, the analysis of the job, the evaluation of the job, the structure of the salary and the various types of the surveys of the salary.

The compensation factor is affected by the various types of the external and the internal factors. The external factors involve the factors like that of the demand and the supply of the labour, the cost of the living, the society, the unions of the labour and the economy too. The internal factors are the one which play a very critical role in the compensation management and include the factors like that of the compensation policy that is to be followed along with the ability of the organisation to the extent that it can pay based on the phenomenon of the job analysis and its description. The compensation depends up on the type of the employee to a very great extent as the good will of the employee in the company and that will only be built by the amount and the quality of the work that has been done by the he or the she. With the help of the good policy of the compensation, it is very much possible to increase the productivity of the organisation and this is achieved due to the provision of the various types of the rewards, the bonus, the schemes etc and also it is compulsory for every organisation top follow and provide this type of the compensation policy fir its employees.

In our day to day life, the word compensation refers to the getting of the payment for the work that has been done. This work can be in the context of the full time engagement or in the part time engagement. But at last what matters is the reward that one gats for all the good work that is done and that is received for expending the energy along with the time and for all this the compensation is received by the employees from the employer. In the context of the employers, the money that they pay to the workers for the work that has been done by the employees is the thing that needs to be planned with a specific vision and according to set types of the rules of the company and the government of the state and the centre. It is very important that the employer and the employee get in to a broad agreement as in many of the scenarios where the difference in the perception has been observed about the employee’s worth that is existing between the two sides and hence it can be said that if there is no such type of the broad agreement, the net result that will be achieved can be on the dissatisfied parameter if seen from the perspective of the employee and hence a type of the friction between the employee and the employer will be observed for sure. So it is very important to have a specific policy of the compensation for the employees and in any of the required scenarios it is to be brought in to the lime light. As the factor of the compensation is the fundamental component of the employment and also of the vital human resource management policies. The compensation traditionally refers to the employment wage, the best type of the practice in the work place in the today’s scenario that considers the total compensation in order to include the basic salary, the bonus or the various types of the incentive plans along with the benefits and the non cash compensation.

The compensation policy is one of the most challenging activities that needs to be done by the human resource management of the company and now before going any further, it is very critical and also very important to have an in depth analysis of the results that are achieved as a result of the compensation as the compensation has a huge affect on the employees of the company and its gravity also pulls many things along with it if it is not managed in a proper effective way. The compensation management is the core and the direct influencing factor that an employee can do for causing the essence of the motivation and the success among the employees of the company. The work that is done by the employees, in the exchange of the work, the employees generally expect some type of the appreciation. The money is considered to be the most suitable way of the compensation as the employees get really charged up with this and the employees really get motivated with this type of the compensation policy but only if this also matches with there expectations. The money in maximum of the cases work but some times various other factors except the money also play a very clean part in the compensation policy like the promotions, the insurance benefits, the paid leaves etc. the major goal of the compensation management is to design the lowest cost pay structure that will attract and also motivate and then finally retain the competent and the talented employees.

In the context of the compensation management, the in depth analysis and the ground level under standing of the various type of the labour laws is also very necessary as only then the company will be able to design a good and the fundamental type of the compensation policy that will work for all types of the employees and in all the seasons. The labour laws or the rules are the ones that are governing the employee’s compensation or the remuneration system. The inter national labour organisation made the various types of the conventions on the labour welfare especially on regularity in the payment of the wages and the salaries with the minimum amount of the pay that has been stipulated for the working hours. According to the various types of the conventions and on the basis of the various types of the recommendations of the international labour organisation, every country of the world has made the certain type of the laws for the labour or the work force and also made it mandatory for there enforcement and who so ever contravenes these labour laws will certainly be held liable for the penalty or the punishment according to the very serious cases that may be supported by the labour laws internationally. As a result of this, the judiciary of the concerned country acts as a watch dog for dealing with the various type of the issues that are concerned with the issues of the labour or the work force.